AXIOS January 19, 2026
Jim VandeHei, Mike Allen

Elon Musk and his SpaceX team believe they’ve cracked the code on building orbiting data centers to power the future of AI — and plan to use the company’s upcoming public offering to help fund the audacious vision, according to people briefed on the plans.

Why it matters: Musk and top executives at other AI giants believe that earthbound data centers will become politically toxic and less efficient than space, which they see as the inevitable answer.

The intrigue: Sources tell us OpenAI CEO Sam Altman agrees with Musk on the physics, but knows the two men are unlikely to work together while they’re battling in court.

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Topics: AI (Artificial Intelligence), Technology
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